Last October, Keababies racked up around $500,000 in revenue during the two-day event, said co-founder Ivan Ong. Drawn by the steep discounts Keababies offered to customers on Prime Day, a flood of Amazon shoppers snapped up bibs, baby combs, pillows, baby slings and changing pads.

But this year, Ong can’t afford to offer as many discounts. The company is facing inventory shortages and fears running out of stock on products on a day with especially high consumer demand. Manufacturing and supply chain costs have also soared, making it harder for Ong to offer deals.
Prices on everything from steel and lumber to corn, diapers and toilet paper are increasing as a result of surging demand from consumers and strained supply chains. A shortage of shipping containers and bottlenecks at ports have increased the cost of moving products around the world, impacting small sellers and large chains alike.
“I don’t have enough profit margin to do…

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